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Premium loading or waiting?

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03 Apr, 2021 by  Prakhar

Hi experts,

I had a not so good health insurance for my parents(aged 69 & 62) which was initially a group policy later converted to retail insurance product which I continued for 6 or 7 years. Then, I learnt about portability, and I ported to another policy which is better than previous.

While porting, the premium was loaded, I tried to negotiate so they offered a waiting period instead with same premium. I took the waiting period option (also paid a 2-year premium). Later, I got to know that loading of the premium was one-off. Now, on hindsight, I realized, I made a mistake. Now, I have few questions.

  • Which is better option? Premium loading or waiting period?
  • Will the waiting period be considered from start of original policy or the new ported policy?
  • Is there any way to fix the problem in the middle of the policy? Also, taking in to consideration my parent's age and 2 year premium paid already. The policies are in force already.

Thanks & Regards

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1 Answer

06 Apr, 2021

Dear Prakhar

I agree that you did not do due diligence at time of policy porting .

New insurer have the right to ask for price load but they can not deny you continuity benefit .

My answer are given below

1. Premium loading will be better as it ensures continuity . As your parents are old hence insurance is needed from the day 1 .

2. Ideally waiting period is from the day of original policy under portability but in your case , new insurer is demanding from the date of new policy .

3. Now you have accepted the terms , you can not change .

I wonder whether your policy was ported or you have been given a new contract .

Please read the terms and check whether policy has been ported .

In case , it is a new contract then you are victim of mis selling and you should reach us by visiting our website .

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07 Apr, 2021
Thanks for your reply. I have double checked with the insurance provider. My policies are ported. Also, the inception date of my policy is of 2012. They have replied back to refer certain clause of terms and condition. By reading, I understand that I should get the coverage without waiting ONLY for the amount previously covered & for increased amount, waiting period is applicable. Is that correct? I am unable to copy term text here but the heading is pre-existing Disease - Code Exc101 Portability & Migration
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07 Apr, 2021
Dear Prakhar Company is right your portability is limited to the same sum assured of previous policy and your incremental sum assured is subject to fresh underwriting . Did you declare all pre existing diseases else you may have problems . Write a letter to insurance company that you want to maintain old sum assured . Try to buy a super top up for parents .
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